Meta’s Threads app, launched as a direct competitor to Elon Musk’s X (formerly Twitter), now boasts nearly 275 million monthly users, marking significant growth since its debut in July 2023. CEO Mark Zuckerberg shared the latest user figures during an earnings call, noting that Threads’ user base has grown 175% since reaching 100 million users last year and that it continues to sign up over 1 million new users daily. Zuckerberg expressed satisfaction with the app’s momentum, calling it a promising addition to Meta’s suite of social platforms.
Threads was introduced shortly after Musk completed his acquisition of Twitter in October 2022 for $44 billion. While X currently retains a slight lead with an estimated 318 million monthly users, this figure has declined by 24% since Musk’s takeover, according to Sensor Tower. Threads’ rapid growth positions it as a close contender, reflecting Meta’s success in tapping into the market of users seeking alternatives to X.
While Threads holds potential for Meta’s advertising ecosystem, Chief Financial Officer Susan Li emphasized that the app is not expected to contribute significantly to Meta’s revenue until after 2025. Meta generated 98.3% of its third-quarter revenue from ads, and while Threads does not currently have a substantial ad presence, analysts at Bernstein anticipate ad rollout and scaling on the app beginning in 2024. This expansion could broaden Meta’s reach for advertisers, leveraging Threads as an additional channel alongside Facebook, Instagram, and other platforms.
Across Meta’s family of apps, the company reported a 5% year-over-year increase in daily active users, reaching 3.29 billion people. However, this figure came slightly below analysts’ predictions of 3.31 billion. Meta shares closed down 4% following the announcement, as investors reacted to the user growth and ongoing strategic focus for Threads.
Li reiterated Meta’s commitment to listening to user feedback and enhancing the functionality of Threads over time. Meta’s primary focus for the app remains on delivering value to the community by introducing features aligned with user interests, ensuring Threads becomes a sustainable and engaging platform.
Threads’ expansion is seen as a promising development within Meta’s ecosystem, offering advertisers more reach while fueling competition in the social media landscape. While monetization may take time, the app’s rapid growth indicates Meta’s potential to reshape social media dynamics as it challenges established players like X.
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